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Oil retreats as China boosts gasoline, diesel prices

19.06.2008 22:00 Shopping - Source: cbc.ca

Oil prices dropped sharply on Thursday after China said it is raising prices for gasoline and diesel fuel.

On the New York Mercantile Exchange, the price of light, sweet crude for July fell $4.75 US to close at $131.93.

China's National Development and Reform Commission, the country's main economic planning agency, said the price of gasoline will go up by 16 per cent while diesel fuel will be put up by 18 per cent. Price increases will also be announced for aviation kerosene.

The increases are meant to help help curb China's growing demand for energy.

The Chinese government increased fuel prices by 11 per cent in November, but has left them unchanged since then.

Also taking pressure off the price of oil was an announcement from Iraq's Ministry of Oil that it was close to signing oil service agreements with some Western oil companies. The contracts would be the first since the country was invaded by U.S.-led forces in 2003.

The agreements are a first step to the country getting a new oil law, which is being stalled by political squabbling.

With files from the Associated Press
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Money Headlines

RCMP charge former Nortel CEO, 2 other execs The RCMP have laid fraud-related charges against former Nortel CEO Frank Dunn and two other erstwhile company executives.Inflation rate rises more than expectedThe annual inflation rate rose to 2.2 per cent in May, up from 1.7 per cent in April, Statistics Canada announced Thursday.Supreme Court to rule Friday afternoon on BCEThe Supreme Court of Canada will issue its ruling on the fate of a $52-billion takeover of BCE Inc. after stock markets close on Friday.Royal Group founder, 5 former execs charged with fraudThe RCMP have charged Vittorio (Vic) De Zen, the founder and former CEO of Royal Group Technologies Ltd., and five other former company executives with defrauding the firm of millions of dollars.Oil retreats as China boosts gasoline, diesel pricesOil prices dropped sharply on Thursday after China said it is raising prices for gasoline and diesel fuel, by 16 and 18 per cent, respectively.   

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